Are there any TRUE BHPH (carry paper)dealers out there ?

[combs.3602]

Mark - 2000 accounts is very impressive,good job! Would you please elaborate about your business,RFC etc..One thing I didnt understand is the 8% discount ? Isnt the norm a 40% discount ? The reserve also is a term I thought was only used by 'actual' outside note purchasers ? Thanks Dennis Combs Boise

[combs.3602]

Hi guys and gals - I posted this a while back hoping to hear from all of my brothers and sisters in BHPH.I am still interested in knowing if most of you sell your paper or keep it in hand like we do.I believe the true key to our success is to not only write our own deals,but keep them.It is very difficult financially to be able to do this,but a little sacrifice in the beginning in my opinion is worth a lot down the road.Let me know gang Thanks Dennis Combs combscarcorral.com Boise/Nampa.Idaho

[localmotors1.7065]

Howdy, We carry our own paper we have done so for 24 yrs. Our business model is to sell the best quality car we can and to make sure the vehicles are serviced properly when they leave the lot. We have not used any form of print advertising in over two years. We have found that buy here pay here customers can be very loyal.We sell cars starting @$3995 up to $9995 we try and get 30% down of the sale price and our max term is 24months. We have a saying buy here pay here stay here!! keep your customers and they will keep you.

[combs.3602]

Hi Local Motors - 1st,Who are you ? 2nd,Thanks for the reply .We have about the same program but we can't find folks with enough income to pay off in 24 months.Our contracts seem to be getting longer every year.We would like to restrict our contract lengths but then we lose the business to a dealer using a mouse house(Reliable/Westlake,etc...) Thanks Dennis Combs combscarcorral.com Boise/Nampa,Idaho

[mamasan1313.8107]

We have have true buy here pay here for 15 years. Recent loss has led to looking to establish RFC. Can anyone help direct me? Am looking for advice on how to separate and what steps need to be taken to establish RFC (outside of obvious incorporation of RFC)...e.g. Purchasing inventory from Lot itself, how to handle accounting, how to fund (e.g. lend RFC $$$$ to get started? How much realistically to get it going? We currently carry approximately 150 accounts. Any assistance would be greatly appreciated

[combs.3602]

Hi - I just posted on another thread what you need to do. Contact CliftonLarsonAllen 888-529-2648.The main office will direct you to the right person,possibly David Keller or David Wiggins. I have been in business for over 40 years and have an RFC.There are quite a few hoops to jump through. Good luck Dennis Combs Combscarcorral.com Boise/Nampa,Idaho

[localmotors1.7065]

Howdy, local motors opened its doors in 1991 and we continue to carry our own paper> TRUE BHPH !

[combs.3602]

Yes John, I think the only way to moderate success is by carrying your own paper.It's very taxing at times but rewarding overall.I always hated the bank or finance company telling me I couldn't sell a reconstruct,a high miler,a specialty car,or a car that ended up being over book because I had to pay so much.With being independent you have the freedom to offer any car you choose and let the customer decide if they're interested or not.I can take '0' down if I want to assume the risk. Dennis Combs combscarcorral.com Boise/Nampa,Idaho

[combs.3602]

We have over 800 members here - Let's all post here about our status - Are we True BHPH (create, write our deals, collect our notes) or due we sell the notes, or have a finance company write or underwrite the deals. I have just short of 1500 accounts now and have never sold a note. Many times I have been tempted but the loss of revenue and control would have been significant. Don't get me wrong ; It is Ok to sell your notes, or to sell cars through 'Mouse House" finance companies. It's just not true BHPH. I'm curious , because I have seen many dealers claiming BHPH when they really are just operating under normal means selling cars. To operate as a true BHPH dealer carries many rewards. You will enjoy the opportunity to say yes when no one else will, take as small of down as you have to, allow 'pic' payments (deferred down) , make a nice return from your financing , keep a close relationship with your customer and your car , larger customer repeat. The independent part of being a used Auto Dealer as opposed to a dependent New Dealer is pronounced 4 fold in True BHPH. Of course there are negatives to every positive - Cash Flow ! You will need to be very frugal in the beginning as well as a large risk taker to succeed. My thoughts Dennis Combs combscarcorral.com Boise/Nampa,Idaho

[jbrash7.8241]

We are a TRUE BHPH dealer in Texas! We are babies in the business and opened just over 3 years ago! Still learning the ins and outs and getting down a plan that works for us but so far so good! Hope I can find some good info on this site (I'm new to it!!)

~Jana